The speculation is that he is trying to avoid being punishedfor a loss of some $430 billion on U.S. Treasury bonds,according to the Austin-based private intelligence bureauStratfor.

Gov. Zhou has been believed to be under house arrest formonths, according to the report, following an investigationthat led to the 2006 arrest of Wang Yi, vice governor of theChina Development Bank.

Though there has been no official confirmation of the rumor,the fact that the People's Bank has gone to elaboratelengths to impress the Chinese state-run media that the bankchief is in not trouble is seen by intelligence analysts asa strong indication there is a shakeup in the powerstructure within the Chinese Communist Party.

Zhou's name has been blocked from search engines on theChinese internet.

He is known to have political ambitions and is a close allyto former Chinese President Jiang Zemin. He is also a corefigure in the "Shanghai Gang" associated with PresidentJiang.

Several news stories released today mentioned Zhiou inconnection with a visit by Japanese Financial ServicesMinister Shozaburo Jimi during a high level Chinese-Japaneseeconomic dialogue on the relative values of the Yen and theYuan.